01 Communique Reports First Quarter 2008 Results



    TORONTO, March 14 /CNW/ - 01 Communique Laboratory Inc. (TSX:ONE) today
announced results for its first quarter fiscal 2008, which ended January 31st
2008.
    Revenue for the quarter was $87,482 with an operating loss of $292,014 or
$0.01 per share compared to revenue of $83,804 with an operating loss of
$419,038 or $0.01 per share for the first quarter 2007. We completed the
period with $2,700,501 of cash and cash equivalents.
    "Throughout the first quarter we continued, and are continuing, with our
three part plan to build our business," said Andrew Cheung President and CEO
for 01 Communique. "First, we are continuing to market our suite of remote
access products using our direct sales efforts and web presence. Our product
offering is a showcase for our technology. Secondly, we are continuing to
support Hitachi in Japan as we wait for their sales and marketing efforts to
pay off. Third, we are continuing with our patent litigation against Citrix
Systems Inc. (NSDQ:CTXS). We believe we have a strong case and will continue
to aggressively pursue this litigation on behalf of our shareholders."

    
    Highlights:

    (1) Expenses. Operating expenses for the quarter of $378,755 were in line
        with expectations and were $98,927 less than the $477,682 incurred
        for first quarter 2007 primarily as a result of a reduction in
        litigation expenses. Operating expenses are expected to continue at
        the current level for the second quarter at which time they will be
        re-evaluated.

    (2) Liquidity and cash resources. We completed the year with cash and
        cash equivalents of $2,700,501 a decrease of $185,769 for the
        quarter. Cash was used to fund the operating loss of $292,014. There
        was an $88,394 source of cash from the issuance of common shares
        primarily from options exercised.

    (3) Hitachi Business Solution "Hitachi". DoMobile Ver.2.5, the latest
        version of DoMobile with increased security and additional smartphone
        functionality was released in October 2007. We will continue to
        support Hitachi as requested as we wait for their sales and marketing
        initiatives to produce revenue.

    (4) Patent litigation against Citrix. We commenced a patent infringement
        lawsuit against Citrix Systems Inc. in February 2006. Subsequent to
        the end of the quarter (as disclosed in our press release issued
        March 13th) the judge in the case issued a memorandum and order
        staying the case pending re-examination of the patent underlying our
        claims. The court vacated all scheduled hearings and conferences and
        will hold all pending motions in abeyance, with the exception of
        01 Communique's motion to show cause. We remain very confident in the
        merits of our case.
    

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or the accuracy of this release.

    About 01 Communique

    Established in 1992, 01 Communique (TSX: ONE) is an innovative force in
the development and delivery of remote access and support products and
integrated communications software. 01's suite of products includes its remote
access product line I'm InTouch (www.imintouch.net) and its remote support
product I'm OnCall (www.imoncall.com). For more information on its products,
visit www.01com.com or call (905) 795-2888 or (800) 668-2185 (North America
only).

    Cautionary Note Regarding Forward-looking Statements.

    Certain statements in this news release may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
company, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. When used in this news release, such statements
use such words as "may", "will", "expect", "believe", "plan", "intend", "are
confident" and other similar terminology. These statements reflect current
expectations regarding future events and operating performance and speak only
as of the date of this news release. Forward-looking statements involve
significant risks and uncertainties, should not be read as guarantees of
future performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements, including, but not limited to,
the factors discussed under "Risk Factors" in the company's Annual Information
Form filed on SEDAR. Although the forward-looking statements contained in this
news release are based upon what management of the Company believes are
reasonable assumptions, the company cannot assure investors that actual
results will be consistent with these forward looking statements. These
forward-looking statements are made as of the date of this news release, and
the company assumes no obligation to update or revise them to reflect new
events or circumstances.



    
                       SELECTED FINANCIAL INFORMATION
                         Consolidated Balance Sheets
                    January 31, 2008 and October 31, 2007
                                 (Unaudited)

                                             Jan. 31, 2008     Oct. 31, 2007
                                           ----------------  ----------------
    Assets
    Current assets
      Cash and cash equivalents             $    2,700,501    $    2,886,270
      Accounts receivable                           70,207           189,681
      Prepaid expenses and other assets             55,788            24,385

                                           ----------------  ----------------
                                                 2,826,496         3,100,336

    Capital assets                                  28,179            23,704
                                           ----------------  ----------------
                                            $    2,854,675    $    3,124,040
                                           ----------------  ----------------
                                           ----------------  ----------------

    Liabilities & Shareholders' Equity

    Current liabilities
      Accounts payable and accrued
       liabilities                          $      227,932    $      281,946
      Deferred revenue                              84,676           102,032
                                           ----------------  ----------------
                                                   312,608           383,978

    Shareholders' equity
      Share capital                             30,427,617        30,338,753
      Contributed surplus                          651,078           645,453
      Share purchase warrants                       30,751            30,995
      Agent options                                339,674           339,674
      Deficit                                  (28,906,827)      (28,614,813)
                                           ----------------  ----------------
                                                 2,542,067         2,740,062
                                           ----------------  ----------------
                                            $    2,854,675    $    3,124,040
                                           ----------------  ----------------
                                           ----------------  ----------------



                       SELECTED FINANCIAL INFORMATION
       Consolidated Statements of Operations and Comprehensive Income
           For the 3 month periods ended January 31, 2008 and 2007
                                 (Unaudited)

                                             Jan. 31, 2008     Jan. 31, 2007
                                           ----------------  ----------------

    Revenue                                 $       87,482    $       83,804
    Cost of revenue                                    741             1,529
                                           ----------------  ----------------
                                                    86,741            82,275

    Expenses (income)
    Selling, general and administrative            214,536           195,106
    Patent litigation                                    -           112,564
    Research and development                       192,312           168,079
    Interest                                       (29,525)           (5,351)
    Depreciation and amortization                    1,432             7,284
                                           ----------------  ----------------
                                                   378,755           477,682
                                           ----------------  ----------------

    Loss before accretion and interest on
    liability component of debenture              (292,014)         (395,407)

    Accretion on liability component of
     debenture                                           -             4,881
    Interest on debenture                                -            18,750

                                           ----------------  ----------------
    Loss for the period and comprehensive
     loss                                         (292,014)         (419,038)
                                           ----------------  ----------------

    Loss per common share
      Basic                                 $        (0.01)   $        (0.01)
      Diluted                               $        (0.01)   $        (0.01)

    Weighted ave. number of common
     shares outstanding
      Basic                                     51,032,098        41,457,707
      Diluted                                   51,032,098        41,457,707



                       SELECTED FINANCIAL INFORMATION
               Consolidated Statements of Operations of Deficit
                                 (Unaudited)
           For the 3 month periods ended January 31, 2008 and 2007


                                                Jan. 31/08        Jan. 31/07
                                           ----------------  ----------------

    Deficit, beginning of period            $  (28,614,813)   $  (26,594,001)

    Loss for the period and comprehensive
     loss                                         (292,014)         (419,038)

                                           ----------------  ----------------
    Deficit, end of period                  $  (28,906,827)   $  (27,013,039)
                                           ----------------  ----------------
                                           ----------------  ----------------


                       SELECTED FINANCIAL INFORMATION
                    Consolidated Statements of Cash Flows
                                 (Unaudited)
           For the 3 month periods ended January 31, 2008 and 2007


                                                Jan. 31/08        Jan. 31/07
                                           ----------------  ----------------
    Cash provided by (used in):

    Operating activities:
      Loss for the period                   $     (292,014)   $     (419,038)
      Items not involving cash:
        Depreciation and amortization                1,432             7,284
        Accretion on liability component
         of debenture                                    -             4,881
      Stock-based compensation expense               5,625            15,061
      Change in non-cash working capital            16,701           155,129
                                           ----------------  ----------------
                                                  (268,256)         (236,683)

    Financing activities:
      Issue of common shares                        88,394           347,376

    Investing activities:

      Purchase of capital assets                    (5,907)             (697)

    Increase (decrease) in cash and cash
     equivalents                                  (185,769)          109,996

    Cash and cash equivalents, beginning
     of period                                   2,886,270           559,558
                                           ----------------  ----------------
    Cash and cash equivalents, end of
     period                                 $    2,700,501    $      669,554
                                           ----------------  ----------------
                                           ----------------  ----------------
    





For further information:

For further information: Investor Contact: Brian Stringer, Chief
Financial Officer, 01 Communique, (905) 795-2888 x204,
brian.stringer@01com.com


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